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Rebranding as a Tool for Corporate Transformation in a Takaful Environment

15 July, 2008International Takaful Summit 2008The Jumeira Carlton Hotel, London, UK

By:Shahril Azuar JiminEVP & Head of Corporate Planning & StrategyEtiqa Takaful Berhad

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1. Corporate Transformation…

What is the definition of Corporate Transformation?

“Transformation is a conscious transition to a significantly higher level of business performance,

and sustainable long-term business health, based on a fundamental shift in people, processes and systems”

Source: Adapted from “Corporate Transformation”, Gilbert F. Amelio, and McKinsey Quarterly

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Why do we need to transform?1. Corporate Transformation…

“You cannot expect significant change unless you change something

significant”

Source: Center for Creative Leadership, Greensboro, North Carolina

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Most Corporate Transformation efforts face 8 pitfalls1. Corporate Transformation…

Under-Communicatingthe Vision by a Factor of Ten

Lacking a Compelling Vision

Not creating a Powerful Enough Guiding Coalition

Not establishing a Great Enough Sense of Urgency

Not Removing Obstacles to the New Vision

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5Not systematically planning for and creating Short Term Wins

Declaring victory Too soon

Not anchoring changes in the Corporation’s Culture

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Eight Common Pitfalls of Corporate Transformation

Source: Harvard Business Review, “Leading Change, Why Transformation Efforts Fail, John P. Kotter

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Overview of Etiqa2. What did Etiqa set out to achieve?

• Mayban Fortis Holdings Berhad is the insurance & takaful arm of the Maybank Group.

• In 2005, Mayban Fortis grew significantly with the acquisition of Malaysia National Insurance Berhad (MNI), Malaysia’s largest national insurer and its subsidiary, Takaful Nasional Sdn Bhd (TN), Malaysia’s premier takaful provider.

• At the end of 2007, the merger effort with MNI and TN culminated in the rebranding of the entire insurance and takaful group to the new brand name – Etiqa.

• The new brand also implies changing the way Etiqa’s employees behave: “The EtiqaWay” was introduced and shared with all the staff and the core of the Etiqa brand is the essence of humanizing insurance and takaful.

• With the new identity and logo, Etiqa is dynamically progressive, changing both internally and externally to ensure that the valued stakeholder benefits from such changes.

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Overview of Etiqa (cont’d)2. What did Etiqa set out to achieve?

• Etiqa, as an insurance group, provides comprehensive insurance & takaful products for both life/family and general businesses.

• At present, it is the largest local-owned, and 2nd largest insurance/takaful group in Malaysia.

• The strength of Etiqa can be seen in the following areas:Multi-channel distributionComprehensive product offering with a complete portfolioStrong financial backing and capacity International presence

• Etiqa has over 2,000 employees, 51 branches, and more than 18,000 agents.

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‘Etiqa’ rebranding is not a renaming exercise, but it is a comprehensive program to change the DNA of the company

2. What did Etiqa set out to achieve?

People • Develop ONE organization culture embodied by The Etiqa Way• Increased employee engagements across all organization levels• Set up comprehensive Human Capital development, e.g. with skills

upgrading program for employees, channels and partners

Management

Employees

Agents

Typical focus of rebrandingefforts

Branches

Call Center

Web Presence

Advertising

Public Relations

Events

• Increase number of touchpoints, and improve types of services provided to enhance service levels for customers

• Inject the human touch into customer interactions, in line with overall Etiqa’s objective to Humanize Insurance & Takaful

• Become top Takaful brand in our market, with Etiqa’ commitment to Humanize Insurance & Takaful - “It’s about People, not policies”

• Become the preferred insurance brand with clear differentiation on attributes of accessibility, hassle-free services, human touch

• Coordinated media campaigns via newspapers, TV, advertisements

Processes Selling

Renewals

Claims

• Put in place simple, effective and hassle-free processes• Redesign process, end-to-end from customers, to achieve ‘Best in

Class” customer satisfaction levels• Achieve improved customer loyalty and persistency levels

Touch-points

Market Awareness

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People

… with its impact clearly felt across the entire organization2. What did Etiqa set out to achieve?

Process

… change the way we deliver our products and services to our customers

… we care for our customers and colleagues and serve them in a human manner

• 90% employees trained; 2,760 in HQ, 590 in branches• 117 ambassadors• 950 Etiqa agents• 67 staff directly

involved in Etiqarebranding Application forms

simplified, with ‘no fineprints’

• 4,100 sales tool-kits distributed• 587 operational

forms simplified• 20+ business

processes ID-ed for redesign• 30+ systems

modifiedCore processes simplified, with enhanced IT

Touchpoints Market Awareness

Hotlines harmonized and made ‘more human’ with no IVRs

• 60 corporate offices and branches• 4 branches fully

re-modeled• 200+ agencies

re-branded• 1,200 signages

unveiled• 9 hotlines

harmonized

• 10+ press conf with top mgmt• Press coverages

in all newspapers• TV coverage• Advertising in TV,

newspapers and selected outdoors

Branch outlets re-modeled, and made customer friendly

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The rebranding program further accentuate critical elements of Takaful principle

2. What did Etiqa set out to achieve?

Critical Elements of Takaful Principle Selected Etiqa’s Brand Attributes*

• Full transparency for fees, charges• Separation of Participant Funds

from Shareholder Funds• Clarity on how funds are invested

and surplus are distributed

Transparency principle “Crystal Clear”

No fine-prints

• Concept of Charity, i.e. provide donation into a pool to assist other participants facing difficulties

• Conducting business in utmost good faith, honesty, full disclosure, truthfulness and fairness

Moral Value & Ethics “Performance with

Conscience”

“Hand-in-Hand”In Partnership

Mutual Brotherhood

• Risk sharing under mutual brotherhood

* Not Exhaustive. Last brand attribute not illustrated is “Rock Solid”

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The program has enabled Etiqa to differentiate on products and services, beyond mere Takaful labeling, to better address market needs

Degree of Islamic Orientation

2. What did Etiqa set out to achieve?

“Low” “High”

Conventional only Value Seekers

Takaful over Conventional, if same returns

Only Takaful

Charac-teristics

• Go for ‘tried and tested’ conventional products

• Lack of awareness and knowledge of Takaful

• Go for best value, best products based on performance, service and quality

• Attracted to strong brands

• Shari’ah compliance considered a bonus

• Attracted to strong brands, better service and quality

• Go for ‘ethical’proposition of Shari’ah (i.e. moral value & ethics, mutual brotherhood)

Est % of population* • 10% • 30% • 40% • 20%

Approach “Need to create awareness”

“Need to ensure full Shari’ah compliance”

“Need to improve performance & service levels”

* Estimated based on Ernst & Young’s Islamic Funds and Investment Report, 2007

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Comprehensive structure, supported by relevant People, Processes and Systems was set up

3. How did Etiqa do it?

Brand Council supported by BMW (Working Team) with 12 workstreams, 90 initiatives, 67 staff

Detailed Workplan with clear requirements for People, Processes and Systems

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This effort culminated in the creation of “Etiqa” on 15 November 2007

4. What did Etiqa achieve?

Claims pro-cessing TAT*

Jun 2007 May 2008 Nov 2010…

…

…

??67 73

Underwriting/ NB TAT*

Customer servicing CSI*

Achieved!

Not ExhaustivePreliminary assessment: 20% improvement achieved within 6 months after Etiqa launch

• #1 by Contribution• Multi-channel• Agency and Bancassurance• 51 branches• > 2,000 employees• > 15,000 agents

Friday, 16th November 2007, we woke up as …

* TAT = Turnaround Time; CSI = Customer Satisfaction Index

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Brand-led transformation is powerful because it simultaneously solve 4 toughest corporate transformation challenges

5. Why has a ‘Brand-led Transformation’ been successful?

Creating a ‘Sense of Urgency’1

Creating an Powerful, Cross-Functional ‘Guiding Coalition’

Silo operations, and defending turfLack of ownership, “..another dept is responsible for the problem”Lacking in critical mass of people, power, information, expertise to make things happen

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Developing and Communicating a ‘Compelling Vision’

Lack of clear vision/ message that is easy to communicateInconsistent messagesSustained communications, via multiple channels, to all stakeholder

Complacency, “..good enough as-is”Reactive, rather than proactively looking hard at existing competitive situation, market trends, financials Not wanting to leave comfort zone, i.e. inertia

Winning the Hearts and Minds and building One ‘Corporate Culture’

Mere numbers and corporate profits do not inspire employeesLack of shared values, that is clearly articulated Lack of change agents, or concrete examples of change-in-motion

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Top Trans-formation

Challenges 3

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1. It creates a ‘Sense of Urgency’, e.g. the Etiqa Promise sets concrete deadline and acts as a call for action

E-Day: Launch of Etiqa brand- Commitment on claims- 587 forms simplified- 4 branches remodeled- 9 hotlines harmonized

Anniversary- New product launch

Milestone #1:- Hassle-free reinstatement- Hassle-free check-up- Agency sales kit- Website enhancement

Milestone #2:- Queue systems in branches- Fast-track hospital claims- SMS renewals

Milestone #3:- Product bundles- Loyalty program- Segmentation

5. Why has a ‘Brand-led Transformation’ been successful?1

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2. It brings together a powerful, cross-functional ‘Guiding Coalition’ to work together for the transformation

5. Why has a ‘Brand-led Transformation’ been successful?2

The Leadership, i.e. ‘Brand Council’Sets direction for entire organizationDefine Branding StrategyMakes decisions; resolves conflict

The Working Team, i.e. ‘BMW’Manage day-to-day execution of the Transformation programmeLead and coordinate initiativesEnsure initiatives are translated to line units

The Evangelist, i.e. ‘Brand Ambassadors’

Live and role model the attributes of the Etiqa brandCommunicate new vision, internally and externally

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3. It develops and communicates a ‘Compelling Vision’ to our customers and general public; clear implications to employees

5. Why has a ‘Brand-led Transformation’ been successful?3

Humanizing Insurance

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4. It engages the people, wins ‘Hearts and Minds’ and fully align the entire organization

5. Why has a ‘Brand-led Transformation’ been successful?4

Top ManagementEtiqa set new standards for the industryWe will role-model The Etiqa Way for our staff, in our daily actions and words

EmployeesI see my managers walk the talkI believe in the vision, and will Humanize Insurance & Takaful in all my interactions with customers, channels and colleagues

Agents, FE’s and ChannelsEtiqa ‘means what it says’ and ‘says what it means’; It is delivering on its promisesI believe that Etiqa will deliver best-in-class products and services

CustomersI am getting best services from EtiqaEtiqa means accessibility, hassle-free and human touch

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Thank you